Opposition activists prepared for talks with Thailand's government on Sunday to seek a way out of an intractable political conflict,but with neither side willing to budge,a resolution seems far from likely. Tens of thousands of red-shirted protesters mobilised around the capital on Saturday in a convoy of motorcycles and pickup trucks in a deafening show of force aimed at toppling Prime Minister Abhisit Vejjajiva's government. Abhisit is refusing to bow to pressure to dissolve parliament and call a new election,but said on Saturday he was willing to negotiate with the "red shirts",although analysts said neither side had anything to bring to the table. The mass rally entered its eighth day on Sunday,with no sign of any "red shirt" violence,a factor that helped lift Thai stocks to a 20-month high last week,with foreigners continuing to pour hot money into one of Asia's cheapest bourses. Protest leaders agreed to the government's offer of talks,either on Sunday or Monday,but only if Abhisit was present. Long criticised for his reluctance to reach out to the "red shirts",Abhisit welcomed talks - as long as ousted former premier Thaksin Shinawatra,the assumed leader and financier of the movement,was off the agenda. "My question is: What is the standpoint of the 'red shirts'? - Democracy or Thaksin? If the answer is democracy,we can talk," Abhisit told Channel 3 television on Saturday. But analysts said the stakes were too high for both sides and talks were unlikely to produce any compromise. "There's nothing to talk about," said Somjai Phagaphasvivat,a political scientist at Bangkok's Thammasat University. "The minimum the 'red shirts' will accept is house dissolution and the government will not yield to that. The root cause of the problem will not be addressed and talks will just pave the way for more protests and upheaval in future." GOVERNMENT SEEN AS UNLIKELY TO FALL Investors and most analysts believe Abhisit's government is unlikely to fall because of backing from the military and wealthy establishment elites,accused by the "red shirts" of meddling in politics and undermining democracy. Academic Somjai said Abhisit's likely tactic was to wait for the protesters,many of whom are from rural areas,to become tired,frustrated and disheartened,and run out of steam. "Abhisit is holding all the cards," he added. "He knows this can't go on for months." The lack of violence and stability of a government that has put Southeast Asia's second largest economy on course for recovery has lessened short term political risk. But investors remain hesitant about a country beset by deep social rifts. Much of the divisiveness centres on Thaksin,loved by Thais as much as he is loathed. Overthrown in a 2006 coup and sentenced in absentia to two years in prison for graft,he is fighting to return from self-imposed exile and wrestle back political power. Security was stepped up late on Saturday after two attacks on what the authorities said were symbolic targets. A grenade exploded in the compound of the Defence Ministry,close to the protest site,injuring two people,while an explosive device was hurled at the headquarters of the National Anti-Corruption Commission in Nonthaburi,bordering Bangkok. It was not known who was behind the attacks. Protesters massed at their open-air encampment in Bangkok's historic heart on Sunday and leaders discussed how to pursue a rally they say will continue for at least another two weeks. Arisman Pongruangrong,who led the "red shirts" storming of an Asian leaders' summit in Thailand almost a year ago,said one possible tactic was to make Abhisit's job impossible by following him and blocking his every move. The premier is avoiding his office,parliament and his home for security reasons and has based himself at a heavily fortified military compound,travelling around the city by helicopter.
